An Essential Vice for the Economy of a Nation

by Admin February 06, 2009 05:23
The Legitimate Debt Collection Industry: An Essential Vice for the Economy of a Nation   Every time I browse, I see the media abounding in the “horror stories” about the terrible debt collector. I have not seen any legitimate debt collector coming out with a sob story or a hard luck issue. Naturally my heart goes out for the debtors in distress, and for me the debt collector was a legend of highly motivated blood sucker.This was before I stumbled upon a study on the economical contribution by the third party collection industry to its nation. It stated that the number of employees in the third-party debt collection industry has grown from 70,000 in 1990 to 150,000 in 2005.  If the Debt collectors are so mean and inhuman, why is the diabolical debt collector with a payroll of $5 billion in 2005 allowed proliferating in the society? I, very soon got the answer. The study was referring to the legitimate and intelligent delegate of a debt collection agency, but not to the street smart brawler with a base ball stick recruited by a greedy loan sharks, zombie or junk debt collector.Because of this infamous trio the third party debt collection agency has fallen into discredit. I continued to look at the latest study from ACA International, the association that represents the debt collector. I find it more interesting as I go by and I started to look at the intriguing statistics. The good news is as following: 
  • The industry The industry directly and indirectly, has supported a total of 426,700 American jobs with a payroll to the tune of $15 billion in 2005
  • In 2005, the collection industry returned $39.3 billion to businesses that helped extend consumers credit
  • Debt collectors saved the average American household $351
  • The $39 billion returned to the U.S. economy was three percent of all U.S. corporate pre-tax profits
  • Many companies would other wise have ended up  bankrupt if it was not for the debt collection services
  • The fastest growing users of third-party debt collectors are the local, state and federal governments
  • Federal government sought help  from the private collection agencies in its 2005 fiscal year for $13.7 billion in delinquent receivables 
  • The private collection agencies recovered $603.1 million in 2005 for the federal government, up from $351.3 million in 2000
 Bad debt results in inflation in any country as the prices increase, in a bid to cover the losses.Thanks to the third party debt collection industry that has helped avoiding a dent in the annual savings in an average household to the tune of: 
  • 19 bags of groceries
  • 155 gallons of gas
  • More than four months of electric bills
 If the debtors regularly repay the money they owe, they are helping the nation in general, and families in specific, tide over many a monetary crisis.In more ways than one, a legitimate debt collector appears to be more patriotic than a patriotic citizen. We only need to be aware of the credentials of lending party before we borrow from them. We can do away with the heart ache and the angst that we might have to face later. If you are a soft target for any loan shark/ zombie/junk debt collector there are laws that help you chase them away. They might even have to pay you in damages besides paying for your attorney.Click www.westopdebtcollectors.com for more information.

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